How Deepfakes Threaten Your Business? Examples and Types

How Deepfakes Threaten Your Business?

Deepfakes can trick people by showing fake videos or sounds of you or your company. Deepfakes—synthetic media generated using artificial intelligence—pose significant cybersecurity risks to businesses, leading to financial losses, operational disruptions, and reputational damage.

In 2024, 92% of businesses reported financial losses due to deepfake-related fraud, with average losses nearing $450,000 across industries and exceeding $600,000 in the financial services sector.

Between 2022 and 2024, the percentage of companies experiencing deepfake fraud incidents rose from 37% to 50% for audio deepfakes and from 29% to 49% for video deepfakes, indicating a substantial increase in operational disruptions caused by such cyber incidents.

In 2023, a UK private school faced significant reputational harm when students created and shared deepfake pornographic images of girls from a neighboring school, leading to a police investigation and widespread media coverage that damaged the institution's standing.

These examples underscore the critical need for businesses to implement robust cybersecurity measures to detect and mitigate the threats posed by deepfakes.

What is deepfake?

DeepFake uses artificial intelligence to make video recordings look and sound like real people. Even if they never actually said or did those things. It's like taking someone's picture and voice and then using a computer to create new videos of them.

You can use deepfake technology for fun, such as in movies or apps. However, people also use it for negative purposes, such as creating fake news or scams. In these cases, people pretend that someone said or did something they didn't. It's important to be careful and check if what we see online is true, especially with Deepfake technology.

How Can Deepfakes Threaten My Business?

Deepfakes can harm your business by creating fake videos or audio clips that seem very real. These can trick people into thinking you or someone from your company said or did something bad. This can damage your company's reputation, make customers lose trust, and even lead to legal problems. Knowing deepfakes is important to protect your business from these fake but realistic-looking threats.

What is deepfake porn?

Deepfake porn uses AI to change videos or photos, often creating fake explicit content. This tech drew major attention when AI-generated images of Taylor Swift spread on social media, leading to significant views and platform actions to limit access. Similar issues arose in India with the altered content of actor Rashmika Mandanna, highlighting privacy and ethical concerns worldwide.

What is a deepfakeporn maker?

Deepfake porn tools, which exploit deepfake technology for creating non-consensual adult content, are widely available commercially. A simple Google search reveals a significant industry presence, highlighting the extensive market for these unethical software applications.

These tools are used to create or alter videos to include explicit content without the consent of the people depicted.

This wrong use of AI creates fake images or videos that look real. It often targets famous people or regular people without their permission. This can cause serious privacy problems and harm their reputation and mental health. The controversial and illegal application of deepfake technology raises significant ethical and legal concerns.

Example of Deepfake Attacks

On January 5, 2024, a Hong Kong multinational company fell victim to a sophisticated deepfake attack, losing $25 million. The fraudsters expertly replicated the company's CFO's face and voice using deepfake technology, convincing the finance team to execute fraudulent transfers. This attack was meticulously planned, utilizing video recordings from previous meetings to train the AI and perfect the voice cloning, a technique explored in our previous "Step by Step Free AI Voice Cloning" blog post.

As AI and machine learning technologies advance, their potential misuse by malicious actors to deceive legitimate businesses is increasing. This incident is not the first or last of its kind. It highlights the importance of understanding deepfake technology. It also emphasizes the need to comprehend its future effects.

What deepfake laws?

The deepfake problem is also global. The US, UK, EU, and China have laws regulating deepfake risks.

Deepfake laws in the US

The US is attempting to pass laws to prevent deepfakes. One such law is the No AI FRAUD Act. This act would criminalize the creation and dissemination of fake videos. State laws vary, with California and Texas leading in specific legislation targeting deepfake misuse in pornography and elections.

Deepfake laws in the UK

The UK's Online Safety Act of 2023 targets the sharing of explicit, manipulated images, focusing on content causing distress. It does not broadly outlaw the creation or non-distressful sharing of deepfake pornographic content.

Deepfake laws in the EU

The EU's proposed AI Act, expected to be finalized in early 2024, will regulate deepfake via transparency obligations for creators rather than outright bans, marking a significant step in comprehensive AI legislation.

How to Prevent Deepfake Used Phishing Attacks?

It's important to teach employees about deepfake phishing attacks and how to spot them to keep safe from phishing attacks using fake videos or sounds. Use extra steps like codes or questions before approving money moves. Keep security rules and lessons up to date to fight off new tricks. Always double-check if something seems odd, using a known method or contact.

These steps help everyone stay alert and keep the workplace safe from these scams.

Prevention Strategies:

• Educate employees on the risks and indicators of deepfake technology.
• Implement multi-factor authentication and verification processes for financial transactions.
• Regularly update security protocols and training to recognize new cyber threats.
• Encourage a culture of verification, where unusual requests are double-checked through direct, secure channels.
• These strategies aim to enhance awareness and security measures within organizations to prevent similar scams.
• Start social engineering and simulated phishing tests to know how your employees respond to phishing attacks.

Editor's Note: This blog was updated on December 3, 2024.